No deal to sell listed software provider
A formal sales process begun by global spend management and B2B eCommerce solution provider Proactics Holdings has ended without a deal being struck.
Proactics has today explained: “The FSP was commenced to enable the Board to explore a number of approaches and expressions of interest which the Board considered had the potential to provide benefit to the Group’s stakeholders.
“A comprehensive process was run to assess the credibility of interested parties and their ability to deliver an offer or strategic outcome that could be recommended to shareholders.
“This has not led to any firm proposals being received and it is unlikely that prolonging this process will deliver a proposal that the Board would be willing to recommend to shareholders.”
The company’s statement adds that it is currently performing well, with a 44% increase in total contract value of new business sold during the six month period ended 31 January 2020.
It notes that this rate of new business has continued during February 2020, and the Group has signed approximately £9.4m of total contract value, cumulatively, during the seven months ended 29 February 2020.
It adds: “The Board is confident the right business strategy is in place and some of the benefits of this are becoming evident already.
“The Board recognises this decision will not have achieved the desired outcome for some shareholders and the Board is committed to working with those shareholders to facilitate their objectives, where possible.”
Tim Sykes, CEO, said: “We believe we have come to the right conclusion for our shareholders as a whole, considering the clear progress that has been made in the business and the opportunities that we have ahead of us.
“The business strategy that we have established is being implemented and is delivering encouraging early indicators.
“As communicated within our recent trading update, we have delivered a significant improvement in new business and dramatically improved retention rates and we expect a return to revenue growth in the second half of this financial year.”
